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Quad Candle System

  • #21
  • May 30, 2017 5:30am May 30, 2017 5:30am
Quoting nozzer
if you can get around the whipsaw ,you got a winning system
I think that if you could totally eliminate all whipsaws you will have found the Holy Grail, what I think is Mastermind is trying to locate a good zone to look for the entry useing in this case a MurreyMaths type grid to lessen the number of whipsaws and using key level stops
ps Mastermind yes I did see the bounce you have mentioned but thought I would only show the Sells first from the setup you mentioned
  • #22
  • May 30, 2017 6:17am May 30, 2017 6:17am
AUDCAD [D1 Chart]

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Masterrmind...........
Master your Mind then Master your Trades
  • #23
  • May 30, 2017 7:51am May 30, 2017 7:51am
Quoting ChicagoRob
{quote} If you enter at the high/low of the fourth candle, instead of the close, you won't get sucked into as many whipsaws.
Perhaps a chart to explain this further might be useful.

One point I will make is the entry on the 4th candle close/5th candle open could be delayed so as to limit the entry even over say a 4 hour period into that 5th candle just to see if a better priced entry can be gained.

However, not all 5th entry candles produce such a pullback before heading in the same direction as the 4th candle.

So what I do is apply a buy or sell limit order at half size at the 50 to 61.8 Fib over the range of Candle 4.

The other half position size is applied at or close to say Tokyo or London Open on the entry candle date.

Candle 4 of the Quad Candle Pattern dictates the direction along with MML sync and other confluence.

In this regard I can force a better entry into the trade if such a pullback occurs in the case where I might be away from the screen although a trade can be made on my smart phone anyway.

I will post a chart at a later date maybe tomorrow that explains it.

Thanks for your input.

Masterrmind..........
Master your Mind then Master your Trades
  • #24
  • May 30, 2017 8:00am May 30, 2017 8:00am
A pair I have recently traded, took a Sell off the Daily made a few pips, but did not want to hang about to long as I also look at the Monthly chart so in fact I am just waiting for a buy to line up ?
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  • #25
  • May 30, 2017 8:07am May 30, 2017 8:07am
Quoting OAPDave
A pair I have recently traded, took a Sell off the Daily made a few pips, but did not want to hang about to long as I also look at the Monthly chart so in fact I am just waiting for a buy to line up ? {image} {image}
Great charts outlining setups.

This is what this thread is all about.

The idea of being in sync with either the W1 or MN charts is additional confluence.

Im going to start adding in a general basic rules section to Post 1 which can be updated and points like this will form part of that list.

I use the words general basic rules because I know many traders like to have some form of guide into taking trades even though Im more of a discretionary trader myself.

Masterrmind.........
Master your Mind then Master your Trades
  • #26
  • May 30, 2017 1:27pm May 30, 2017 1:27pm
Hi Masterrmind,thanks for share your system,but i have a question about this.
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  • #27
  • May 30, 2017 9:02pm May 30, 2017 9:02pm
Quoting iefuzzer
Hi Masterrmind,thanks for share your system,but i have a question about this. {image}
This is the whipsaw situation mentioned briefly above.

Depending on the exit strategy used example 2 opposite in series colored candles the trades would be stopped out for relatively smaller losses until the longer trending trade was captured for much larger gains.

I will post a chart later on a pair that follows the Quad cycle and provide the pip tally over a given period of time.

Its not always possible to predict when a whipsaw situation will occur.

However, the trader always has the choice of when to enter.

I usually seek an entry at extreme MML levels where longer trends more often develop but I cannot guarantee nor would I that the next entry was not a whipsaw situation.

Taking the good with the bad is part of the business but being able to run the good trades as long as possible is the secret.

I will show many examples later on different pairs, indices and commodities.

Masterrmind.........
Master your Mind then Master your Trades
  • #28
  • May 30, 2017 11:59pm May 30, 2017 11:59pm
Quoting Masterrmind
{quote} This is the whipsaw situation mentioned briefly above. Depending on the exit strategy used example 2 opposite in series colored candles the trades would be stopped out for relatively smaller losses until the longer trending trade was captured for much larger gains. I will post a chart later on a pair that follows the Quad cycle and provide the pip tally over a given period of time. Its not always possible to predict when a whipsaw situation will occur. However, the trader always has the choice of when to enter. I usually seek an entry at...
very good idea
bravo mastermind
  • #29
  • Edited 1:08am May 31, 2017 12:57am | Edited 1:08am
candle counting is v effective. usually the more candles of the direction in a row, the greater the chance of a reverse/pullback. there is a thread on the probability ratio somewhere in the forum.

however do note. that even tho candle counting on a daily basis is highly effective, the issue arises when it is the beginning of a new day aka spread at it's worst, even for interbank
  • #30
  • May 31, 2017 1:11am May 31, 2017 1:11am
Quoting dimdel
{quote} very good idea bravo mastermind
Always welcome here Dimdel.

An ancient idea discovered long ago.

This thread will drive the method deeper with plenty of MM aspects taken into account.

The trader makes or breaks any system!

Team input makes the drive all the better!

ps. I make no ownership of this method in its pure form however, I will bring into the method many ideas of mine and other like-minded traders.

Masterrmind............
Master your Mind then Master your Trades
  • #31
  • May 31, 2017 1:27am May 31, 2017 1:27am
Quoting Bicarus
candle counting is v effective. usually the more candles of the direction in a row, the greater the chance of a reverse/pullback. there is a thread on the probability ratio somewhere in the forum. however do note. that even tho candle counting on a daily basis is highly effective, the issue arises when it is the beginning of a new day aka spread at it's worst, even for interbank
Indeed.

The probability ratio has its place and would be an interesting read forsure.

Masterrmind...........
Master your Mind then Master your Trades
  • #32
  • May 31, 2017 3:15am May 31, 2017 3:15am
Paul Langham, the author of the V Method YouTube videos, recommends a minimum number of bars between setups(ten, for example). This should, theoretically, eliminate some of the whipsaw.
  • #33
  • May 31, 2017 3:30am May 31, 2017 3:30am
Quoting ChicagoRob
Paul Langham, the author of the V Method YouTube videos, recommends a minimum number of bars between setups(ten, for example). This should, theoretically, eliminate some of the whipsaw.
Yes this forms part of the trader discretionary component.

However, I do not believe that a specific number should be given between setups as mentioned in the 'V method'.

This is because the chart structure, the setup, the pair dynamics and multiple other factors all vary between symbols.

Not only that but the setup a trader rejects may well be the 500-1000 pip run.

I am not suggesting that all setups be taken for example on a traders favorite pair but by using a somewhat 'selective' method.

The selective method is where the extreme MML levels come into play because typically these zones show great tendencies for pullbacks to occur.

When these pullbacks occur they send PA either up to or down to the next MML level and a smart trader would then consider locking in at BE+pips to protect their position.

I propose that each setup should be largely unique and considered on its own merits.

ps. I know you didn't say exactly 10 bar spaces between further attempts but I disagree with a number being used here at all.

pps. Once I get into a potential trade setup I will post a chart and outline my methodology of engagement.

Masterrmind............
Master your Mind then Master your Trades
  • #34
  • May 31, 2017 4:03am May 31, 2017 4:03am
Morning Mastermind
I think it might useful to copy over that little video of Murrey and the screenshot of the movement between Octaves for the guys that are not to familiar with his work, would explain why you mention the +/- 1/8th 2/8th zones, just going to pop a post up on how I have my fib tool set to copy over any octave level, the chart shows the present Monthly Octave level onto a Daily Chart E/Nzd
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  • #35
  • May 31, 2017 7:20am May 31, 2017 7:20am
Guys, Mastermind method is well worth making the effort to understand, I will just give you an example of trading off a 1 minute chart, now just think about how a Daily range is arrived at ? When price arrives at Mastermind zones you would expect them to hold or break ? so what do you see off the chart, ( you must bear in mind the spread if you ever attempt to trade this timeframe)
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  • #36
  • May 31, 2017 7:25am May 31, 2017 7:25am
Quoting OAPDave
Morning Mastermind I think it might useful to copy over that little video of Murrey and the screenshot of the movement between Octaves for the guys that are not to familiar with his work, would explain why you mention the +/- 1/8th 2/8th zones, just going to pop a post up on how I have my fib tool set to copy over any octave level, the chart shows the present Monthly Octave level onto a Daily Chart E/Nzd {image} {image}
Yes the octave movement is a key consideration.

Feel free to add it here if you wish.

Masterrmind..........
Master your Mind then Master your Trades
  • #37
  • May 31, 2017 7:42am May 31, 2017 7:42am
Quoting OAPDave
Guys, Mastermind method is well worth making the effort to understand, I will just give you an example of trading off a 1 minute chart, now just think about how a Daily range is arrived at ? When price arrives at Mastermind zones you would expect them to hold or break ? so what do you see off the chart, ( you must bear in mind the spread if you ever attempt to trade this timeframe) {image}
I plan to add some MML material to promote an understanding of the octaves ... this will be uploaded to Post 1 tomorrow.

I do not plan to explore any of the Murrey trading frame concepts here.

However, I will be including a 64 D1 period trading frame as it encompasses quarter by quarter periods in the market.

My trading frame start date will be 1st trading day of the year through to March 31, then so on.

I believe its important to have a clear picture of the monthly and the quarterly highs and lows and where current price action fits in.

The mechanics of this Quad Candle method will not be affected however when price interacts with these specific highs and lows a trader needs to be paying attention.

More on this subject soon.

Masterrmind........
Master your Mind then Master your Trades
  • #38
  • May 31, 2017 10:59am May 31, 2017 10:59am
Quoting Masterrmind
QUAD CANDLE SYSTEM The system is based around 4 by D1 candle formations with respect to the following: a) 2 bullish candles followed by 2 bearish candles looking to go short the market or b) 2 bearish candles followed by 2 bullish candles looking to go long the market ENTRY (Basic criteria) Enter short after the Short Quad Candle Pattern (SQCP) has completed or Enter long after the Long Quad Candle Pattern (LQCP) has completed Since the trigger for entry must occur after the close of a daily candle, be sure to realize that this does not suggest...

Interesting method. I will definitely following this. ..Thanks for sharing.
-happyTrading-myFx.
  • #39
  • May 31, 2017 11:22am May 31, 2017 11:22am
Quoting myfx
{quote} Interesting method. I will definitely following this. ..Thanks for sharing.
Welcome myfx.

Soon enough the method will start to make sense.

Enjoy the journey,

Masterrmind.........
Master your Mind then Master your Trades
  • #40
  • May 31, 2017 11:34am May 31, 2017 11:34am
Mastermind talks of the extreme MM levels, another area to have a look at is the Breakout of the 3/8th 5/8th Trading zone, depending on which way out look at the 1st attack of the 6/8ths or 2/8ths and what happens gives constant 1 -1 risk reward using 4/8ths as stop
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